South Asian Association for Regional Cooperation (SAARC)

The South Asian Association for Regional Cooperation (SAARC) has now completed thirteen years since its establishment on 8 December 1985. From relatively modest beginnings, SAARC members have been gradually expanding their cooperation to cover new areas of common interest.

In the beginning SAARC focussed primarily on technical cooperation with the aim of creating common ground. Eleven Technical Committees have been set up under SAARC, covering Agriculture, Communications, Education, Culture & Sports, Environment & Meteorology, Health & Population activities, Prevention of Drug Trafficking & Abuse, Rural Development, Science & Technology, Tourism, Transport and Women's Development. These Technical Committees draw up an Annual Calendar of activities for exchange of information, formulation of programmes and preparation of projects in their respective fields. These do not comprise the exclusive areas of cooperation, and SAARC activities and meetings take place on specific subjects of common interest, as and when required. Four SAARC Regional Centres have also been set up on Agricultural Information, (Dhaka), Tuberculosis Prevention, (Kathmandu) Meteorological Research, (Dhaka) and on Documentation of SAARC interest. India hosts the SAARC Documentation Centre. A fifth Regional Centre on Human Resource Development is proposed to be established in Islamabad, Pakistan.

Beginning about 1990, the second stage of cooperation within SAARC was on the Social Agenda. Major Initiatives have been taken on social issues such as eradication of poverty, promotion of literacy, and development of women and children. It was decided that the decade 2001-2010 would be designated as the "SAARC Decade of the Rights of the Child". SAARC will also pay particular attention to the evil of trafficking in Women and Children. A Regional Convention on Prevention of Trafficking in Women and Children has been negotiated and is to be signed at the Eleventh Summit in Kathmandu. This Convention provides for extradition or prosecution under national laws of persons involved in trafficking. It also provides for assistance in investigations and for orderly repatriation of victims of trafficking.

Particular focus has been placed on the persistent problem of poverty in the region and the Heads of State or Government of SAARC countries have committed themselves to the eradication of poverty in South Asia, preferably by the year 2002 AD. A three-tier institutional structure to evolve cooperation in this field has been set up. These three tiers comprise: the group of Secretaries to Governments dealing with poverty eradication and social development, the group of Finance/Planning Secretaries of SAARC countries, and SAARC Finance/Planning Ministers. This mechanism acts as a forum for exchange of information on poverty eradication programmes, strategies and technologies. The impact of structural adjustment programmes and economic liberalisation on the weaker sections of society was kept in focus through involvement of the Finance/Planning Ministries at the highest level. The second meeting of the first two tiers were held in Islamabad in April, 1997. The Tenth Summit has reiterated that the Finance/Planning Ministers should meet again soon to give further impetus to this process.

An Agreement on establishing a SAARC Food Security Reserve was signed in 1987 and came into effect on the 12th of August, 1988. This provides for a reserve of food grains for meeting emergencies in Member Countries. The reserve is to be maintained at a minimum level of 2,00,000 tonnes with India's share being 1,53,000 tonnes.

Four Ministerial Meetings on Environment have been held so far. The Third Meeting of SAARC Environment Ministers was held in Maldives in October 1997 to consider the recommendations of the two SAARC Studies on Causes and Consequences of Natural Disasters and the Greenhouse Effect and its Impact on the Region. The Meeting adopted an Environment Action Plan focusing on environmental impact evaluation, exchange of information and development of human resources through training. The Meeting also adopted a Common SAARC position on Climate Change ahead of the Kyoto meeting. A Declaration stating a common SAARC position on Climate Changes Issues for the Buenos Aires Meeting was issued at the Fourth SAARC Environment Ministers' Conference in Colombo (Oct 30 - Nov 1, 1998). The Ministers also agreed that Bio-Diversity Conservation would be the special focus of SAARC activities for 1999.

A beginning has also been made to develop cooperation in the important field of Information and Media. The first SAARC Information Ministers Meeting which was held in Dhaka in April 1998 adopted an Action Plan for strengthening cooperation through, inter alia, greater interaction amongst media personnel, cooperation amongst news agencies, free flow of newspapers, journals and books within the region and reduction of hostile propaganda.

SAARC has also put in place institutional arrangements for Cooperation in combating Terrorism and trafficking in Narcotics. Problems remain with regard to implementation of these Conventions.

The SAARC Convention on Suppression of Terrorism was signed in November 1987 and came into effect on 22nd August, 1988 after ratification by all Member States. Under its provisions, Member States are committed to extradite or prosecute alleged terrorists, thus preventing them from enjoying safe havens. Regional Cooperation is also envisaged in preventive action to combat terrorism. However, Pakistan and Bangladesh are still to enact the necessary domestic legislation to give effect to the Convention. The SAARC Terrorist Offences Monitoring Desk has been established in Colombo to collate, analyse and disseminate information on terrorist incidents.

The SAARC Convention on Narcotic Drugs and Psychotropic Substances was signed in November 1990 and came into force on 15 September, 1993 following ratification by all Member States. The SAARC Drug Offences Monitoring Desk has been established at Colombo to exchange information and intelligence on drug offences. An MOU between SAARC and the United Nations International Drug Control Programme (UNDCP) has been signed.

SAPTA - SAFTA

Cooperation in core areas of economic cooperation is fairly recent. The operationalisation of the South Asian Preferential Trading Arrangement (SAPTA) in December 1995, following ratification of the SAPTA Agreement by all SAARC countries has evoked much interest. Achievement of a South Asian Free Trade Area (SAFTA) has also become a part of the SAARC Agenda. A modest beginning First Round of SAPTA Negotiations with tariff was made in the concessions exchanged on 484 Tariff-Lines (under the new harmonised System of classification at 6-digit level) for intra SAARC trade.

The Second Round of Trade Negotiations under SAPTA which concluded in November, 1996, was more substantial with 1975 tariff lines covered under concessional tariffs as the following matrix shows:

The cumulative total concessions offered countrywise were: India: 911, Bangladesh: 206, Pakistan: 386, Sri Lanka: 102, Nepal: 377, Bhutan: 47, Maldives: 5

A major boost to trade within the region was provided by the bold initiative taken by India to unilaterally lift all Quantitative Restrictions maintained on Balance of Payments reasons preferentially for SAARC Countries from August 1, 1998. Over 2000 products from the Restricted List have been placed on OGL for SAARC Countries, substantially enhancing their access to the Indian market.

The Third Round of Trade Negotiations concluded on 23rd November, 1998. A total of 3456 tariff lines were covered under concessional tariffs and India offered more than half the concessions as the following table shows:

The cumulative total concessions offered countrywise were India: 1917, Bangladesh: 481; Pakistan: 295; Sri Lanka: 82; Nepal : 189; Bhutan: 124; Maldives: 368.

The Leaders at the Tenth SAARC Summit at Colombo also decided to set up a Committee of Experts to conclude a Treaty by 2001 on a South Asian Free Trade Area. This Treaty will spell out legally binding schedules for freeing trade and would provide a predictable and transparent blue-print for achieving a Free Trade Area in South Asia. It will also include special facilitative measures for the Least Developed Countries.

India has also offered to conclude bilateral free trade agreements with those countries who are willing to mover faster. Sri Lanka has taken up the offer and negotiations are under way on a bilateral India-Sri Lanka Free Trade Agreement (India already has Free Trade Agreements with Nepal and Bhutan). This is expected to complement the SAPTA process and provide it added momentum.

Economic co-operation has been further institutionalised with the commencement of the meeting of Commerce Ministers of SAARC countries. The First SAARC Commerce Ministers Conference was held in New Delhi in January 1996 when the SAARC Trade Fair was also hosted by us. This has now become an annual feature along with a Conference organised by the SAARC Chamber of Commerce and Industry. The second meeting of SAARC Commerce Ministers was held in Islamabad from April 29-30, 1998. Among the important decisions taken at the meeting was the setting up of a coordinating group of SAARC Ambassadors at the WTO to coordinate and harmonise SAARC positions on international economic issues of common concern. The Second SAARC Trade Fair was organised in Colombo, Sri Lanka (Aug 8-15,1998)

New areas in regional cooperation are being considered for SAARC action in the coming years. Intra-regional investment promotion and protection, and avoidance of double taxation are two such areas in which regional arrangements are being considered. Harmonisation and simplification in customs procedures in the subject of another ongoing exercise. A Customs Action Plan has been agreed upon and a standing Customs Coordination Group constituted. The Third Meeting of the Group took place in Jaipur in August (24-25), 1998. A Working Group on Standards, Quality and Measurement is also to be set up.

The First SAARC Meeting to discuss measures for Promotion and Protection of Investment was held in New Delhi on 29-30 September 1997. A draft Regional Investment Agreement was circulated by India at the meeting for consideration of Member States. India has also been asked to prepare a Concept Paper on Setting-up a Regional dispute Settlement Mechanism which would help to resolve commercial and investment disputes at a regional level rather than through costly International Arbitration. The next meeting on Investment is expected to be held in the near future.

A SAARC Visa Exemption Scheme was initiated in 1988 with a view to promote closer and frequent contacts among the people of the SAARC region which became operational from March 1, 1992. The Scheme has been progressively expanded to cover twenty-one categories of people eligible for visa free travel in the SAARC Region. An Expert Group Meeting was held in Kathmandu in November 1998 to further expand the Scheme, rationalise it and lend more transparency to it.

At the Ninth SAARC Summit at Male ( May 1997 ) SAARC leaders set up a Group of Eminent Persons (GEP) to review the functioning of SAARC institutions and provide a Perspective Plan upto the year 2020. The Group has recommended that regional economic integration is necessary and suggested a time bound plan which includes Negotiation of a Treaty for South Asian Free Trade Area by 1999 with implementation commencing immediately thereafter and stretching to 2008 for SAARC members and to 2010 for the SAARC LDCs. It also envisages a SAARC Customs Union by 2015 and a SAARC Economic Union by 2020. In the Social field, the GEP has recommended the target of reaching a replacement level of population, which translates into a birth rate of 21 per thousand, before the year 2020; attainment of universal primary education up to the age of 15 before the year 2010; elimination of gender disparities in access to education within the target date of 2010; reduction of infant mortality below 50 per thousand live births by the year 2005; attainment of 100% immunisation by the year 2000 in target areas set by the UNICEF programmes; empowerment of women socially, economically and politically and holding of regular biennial Ministerial meetings on Women's Development. Each Member-State is to set its own time-frame for poverty eradication. The GEP has recommended the adoption of a Social Charter for SAARC which could incorporate these objectives. Two of the substantial recommendations of the GEP namely, negotiation of a Separate Treaty for SAFTA and the adoption of a SAARC Social Charter have been accepted by SAARC leaders at the Tenth SAARC Summit at Colombo ( July 1998 ). The other recommendations will be discussed and considered by the SAARC Foreign Secretaries at their next meeting.

Informal Political Consultations: Article X (ii) of the SAARC Charter excludes bilateral and contentious issues from the ambit of SAARC. However, the Summit Meetings provide occasions for informal political consultations. Such informal consultations are, by their very nature, unstructured. The Retreats at the Summits provide an opportunity for informal consultations among the Heads of State/Government to see how they can take SAARC forward. The Summit also provides an opportunity for informal bilateral consultations in the bilateral meetings between SAARC leaders on the sidelines.

Sub-regional cooperation, which would involve development of specific projects involving three or more Member States is to be pursued under the SAARC umbrella. The proposal for a Quadrilateral Growth Initiative comprising Bangladesh, Bhutan, India and Nepal (BBIN) will now be pursued under the SAARC framework. The objective of the proposed BBIN Growth Quadrangle is to create an enabling environment for rapid economic development through the identification and implementation of specific projects. Sectors identified are Multi-Modal Transportation and Communication, Energy, Optimal and Sustainable Utilisation of Natural Resource Endowments, Trade and Investment Facilitation and Promotion, Tourism and Environment. Tangible benefits should be in the form of poverty eradication, employment and income generation, social welfare and improvement in the quality of life of the people of the Growth Quadrangle.

Interaction between other International organisations and SAARC: SAARC has signed Memorandum of Understanding and cooperation with several UN agencies including UNDP, UNCTAD, ESCAP, UNDCP and UNICEF, and with the Colombo Plan, EU and the International Telecommunications Union. SAARC also has limited donor agreements with Japan (thorough the SAARC Japan Fund) and Canada (through the SAARC-CIDA MOU).

26. SAARC is a young regional organisation, and, as its members, we have taken a conscious decision to exclude bilateral and contentious issues from its scope and to move forward at a pace comfortable to all. We focus on those issues which are of common interest and of direct benefit to our peoples. This focus is reflected in all SAARC activities and in the increasing number of collective SAARC positions being evolved and presented before international fora.